The World Bank’s International Finance Corporation has acquired a Sh. 12.2 billion stake in leading lender Equity Bank. The acquisition has taken the corporation’s stake in Equity to 6.7 per cent.
“EGH was notified that on December 24, 2021, Britam Holdings and Britam Life Assurance Company (Kenya) entered into a share purchase and sale agreement with International Finance Cooperation (IFC) and IFC Financial Institutions Growth Fund LP whereby, subject to the approval of the Capital Markets Authority, IFC agreed to acquire by way of a private transaction, 164,521735 shares constituting an equity stake of approximately 4.36 per cent as at December 22, 2021,” a notice on the acquisition said.
“IFC FIG Fund agreed to acquire 88,588,626 shares (constituting an equity stake of approximately 4.36 per cent as at December 22, 2021) held by Britam and Britam Life in EGH.” According to Equity’s annual report for the year ended 2020, the top shareholders include Arise BV founded by Rabobank, Norfund, NorFinance and FMO, which owns 452 million shares of the lender translating to 11.99 per cent stake valued at Sh. 21.9 billion. Other top investors listed include Stanbic Nominees with 131.9 million shares valued at Sh. 6.4 billion, and the firm’s Managing Director James Mwangi whose 127.8 million shares give him a 3.3 per cent stake valued at Sh. 6.1 billion.
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Over the past few years, IFC has been increasing its stakes in local leading businesses. In 2020, the IFC acquired a Sh. 6 billion stake in retail business Naivas Supermarket. The stake was sold to among others the World Bank’s International Finance Corporation. Others who took part in the deal include private equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG. IFC also owns 10.37 per cent of Britam. In addition, earlier this year the IFC said it intends to make an equity investment of approximately $90 million (Sh. 999 million) in Liquid Intelligent Technologies, as part of a rights issue for existing shareholders.
